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UMW unit, Tico collab on industrial equipment biz
Published on: Tuesday, October 10, 2023
By: Bernama
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UMW unit, Tico collab on industrial equipment biz
Kuala Lumpur: UMW Equipment Division Sdn Bhd (UEDSB) has entered into a share sale and purchase agreement (SSPA) with Toyota Industries Corporation, Japan (TICO) to further deepen strategic collaboration between the parties with respect to the industrial equipment business.

UEDSB is an indirect wholly owned subsidiary of UMW Holdings Bhd (UMW).

In a statement, the company said under the SSPA, UEDSB has agreed to dispose of a 26 per cent interest in UMW Toyota Material Handling Sdn Bhd (UTMH) to TICO for RM260 million. On completion of the SSPA, UEDSB will have a majority shareholding of 74 per cent while TICO will have a 26 per cent interest in UTMH.

UMW president and group chief executive officer Datuk Seri Ahmad Fuaad Kenali said the partnership will help UMW to move up the value chain in the industrial equipment business from distributorship to a more value-driven one-stop centre service and logistics automation business.

“The opportunities will come via the introduction of new equipment, innovative solutions and improvement of value-added services to expand its customer base and strengthen market share in the territories that it operates in,” Ahmad Fuaad said.

TICO is a leading global manufacturer of material handling equipment while UMW has a strong regional presence, the statement said.

He said this collaboration is essential in supporting industries to gear towards Industry 4.0 and is expected to drive the growth of the industrial equipment business going forward.

UMW’s business relationship with TICO started in 1967 when the distributorship for Toyota forklift was awarded to Malaysia and Singapore, and this was extended later to include Vietnam and the Shanghai and Zhejiang regions in China.

Meanwhile, UMW Toyota Motor Sdn Bhd achieved a year-to-date (YTD) total sales of 76,511 units as of September 2023 versus 70,872 for the same period a year ago.

In a statement, the carmaker reported an eight per cent year-on-year increase for the first nine months of 2023.

The September monthly total of 9,228 units comprises 9,020 Toyota units and 208 for the Lexus marque, the statement said.

“Toyota continued to strengthen its offerings for drivers in Malaysia with the introduction of the Yaris to solidify its leading position in the non-national B-segment hatchback market,” Toyota said.

UMW Toyota Motor president Datuk Ravindran Kurusamy said to meet customer expectations, they have continued to update and improve offerings.

“The Yaris is targeted at Gen-Z drivers who have a strong appreciation for style, self-expression and social standing. From its stylish exterior appearance to advanced technology coupled with Toyota safety sense features, the new Yaris offers enhanced driving comfort and peace of mind during every drive,” he said.

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